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Canadian Wholesale Sales Improve - USD/CAD Remains in Consoliation

According to Statistics Canada, Wholesale sales rose 1.2% in April, to $51.2B. This follows a decline at -0.3% in March, and also beat forecast of around 0.3% for April. 


(source: StatCan)

"Higher sales were recorded in all subsectors except for food, beverage and tobacco. The subsectors that rose in April accounted for 80% of wholesale sales."

The better than expected data helped the loonie. USD/CAD was on its way to break above a diamond pattern which would have been a bullish signal, especially if price extends above 1.0880. However, USD/CAD retreated, and is now testing the pattern support. 

(usdcad 1h chart, 6/18)

The market is probably waiting on the FOMC announcement and Yellen's presser. The USD/CAD will need to break above 1.0880 or below 1.0835 to provide any direction clues and the FOMC might just do that. A hawkish FOMC will be positive for USD/CAD, and a break above 1.0880 can open up the 1.0920 and 1.0960 resistance pivots. A dovish FOMC will put pressure on USD/CAD towards the May and June lows, as well as the 1.08 handle.